Posted by Lending Club :: July 23, 2008 @ 10:15 amThe number of foreclosure filings for June was recently released, and the news is not good. The Associated Press is reporting that filings were 53% higher than last June. This trend shows the increasing number of homeowners with few perceived options and reminds us all to take steps to prevent foreclosure before it’s too late.
The best way to prevent foreclosure is to buy an affordable home in the first place. A home with monthly commitments that can easily be met, even during a tough financial stretch, leaves little risk of foreclosure. The main problems are that many people buy homes that they really can’t afford; use financing options that can see major price increases; are living paycheck to paycheck; or live in areas where safe, affordable housing is in extremely short supply.
For those stuck in a home heading towards foreclosure, the U.S. Department of Housing and Urban Development offers tips for avoiding foreclosure. A P2P loan may also be a good way to get some cash at a relatively low interest rate. In addition to covering unexpected expenses, loan proceeds can be used to pay your mortgage until you get back on track or to consolidate high interest debt to lower your overall monthly commitments.
At the thought of losing their homes, many homeowners finally make the changes necessary to improve their finances. Sacrificing some luxuries may be difficult, but not nearly as bad as losing a home. For those who nearly lose their homes, and perhaps even for some who do, the learning experience can actually help bring about some positive changes.
Foreclosures are going to remain high for the foreseeable future. By making good upfront decisions when buying a home and following qualified advice if you get into trouble, you can reduce your chances of being part of these catastrophic statistics.
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